Here is an interesting post I found over on SatWaves:
Numbers are a bit off as compared to Homer's, but the theory holds. It looks like this is using a share price of 50 cents per share. Basically it looks like by increasing the float to 9 billion, Sirius XM would have about 1.6 billion shares to trade and/or liquidate for debt. If they hold onto the the shares until the price increases (like around $1), you could potentially see a significant reduction in debt. Would that reduction in debt offset the dilution factor as far as PPS goes? Might not be as bad as some people think...Originally Posted by XM Dave